New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-13
PRICE THREE CENTS.
BIG GAS CONSOLIDATION.
A NEW-YORK CORPORATION TO ABSORB
ALL THE BOSTON COMPANIES
THE OPERATION WILL REQUIRE AN OUTLAY OF
$4,000. .O00-How THE PURCHASE


$lOOOO,O00-HOw THE PURCHASE
Is TO BE MADE.
BosToN,June 12-The Commercial Bullentin devotes
some attention to the scheme of the Bay State Gas
Company. which is attempting to secure the con-
troll OF all the Boston gas Companies, seven in
number, whose capital stock foots up some
s4.se00O0. selling at So $4,000 in the msrkcs
and average earnings 913 per cent upon the
capital The paper says;
"1he Bay State Gas people do not expect to
get these companies under 50, 900 OO0 and estimate
their future operations on the round figure of
slO,OOO,o0o being paid for contIol. On this basis
they see extensive profits in the execution of their
Plans The Bay State Gas Company is New
York corporation OF S3,000,O00 stock and
s2,OOO,oO0 noncumulative per cent income
bonds, which corporation owns the Bay State
Gas Company of Massachusetts, having capital Of
s5O0oOO. This New-YOrk corporation intends
ultimately to absorb all the Boston companies.
syndicate with capital Of s2.9OOOO0 has been
organized with the object of acquiring the other
companies and is TO play the part Of q banking
house in securing those companies. 1t is to be
temporary organization 10 cease existence when
it has secured the other companies. The trustees
are Samuel LITTLE, j, Edward Addicks W. f. l..
Dilloway, Eustace c. Fitz and Henry c. Gibson.
IAN advisory committee, to be consulted in tho
aun&1strnuOn or TINS trust, and whose names
have not been made public, arc Elisha S. Converse
Asa p. Potter and Henry d. Hyde, The plan Is TO
use the s2,90000O as banking basis for borrow
ing sufficient money to secure the other companies
" hen the object Of the syndicate is accomplished
the companies are to be turned over to the Bay
State Gas company Of New-Yorl< at cost. That
company is to buy-not be bought. That company
will issue collateral trust per cent long term
bonds against the securities turned over to it, and
expects to dividends for its stock and income
bonds ON the profit Of the business.
THE inside wheel is the Beacon Construction
Companv--a foreign corporation with a capitalof
S1,500,0O0 having the contract to build the
this stock has lately been acquired
by the above described gas syndicate at $3.50
per share par value Of $780, The other so per
cent is IN the name and control of j. Edward Adj
dicks When the objects of tho syn
Construction Company will, of course,
have completed the Bay State plant. and the Bea-
Its profits be divided-4O per cent to the syndicate
to repay them for the Of their money and labor
ia buying up the other companies and 60 per cent
TO Mr. Addicks and those whom he represents as
the original promoters of the enterprise
"Thus the money being put into the syndicateOr
trust receives compensation out of the profits OF
the Beacon Construction Company and becomes
finally lodged In the Bay State Gas Company.
Of New-York The Beacon Construction Company
shows a surplus in round numbers of S425, 900 oD
June l. The plant at South Boston will be cont
pleted in August The intention is TO have one
price tor gas throughout Boston, say in the iD-
mediate vicinity of 20 cents per thousand feet"